Will this ETF continue its string of recent wins? Let's take a closer look at the fund, its recent gains, the category it resides in, and its ratings and outlook to get a sense of whether its momentum is sustainable or not.
Inside HYG's Rise
As mentioned earlier, HYG has now gained 16.77% from its 52-week low, which was hit back on February 11, 2016. The fund has now returned 1.44% over the past month, 2.83% over the past three months, and 4.34% in the past six months. Those returns compare to the benchmark S&P 500 index's 2.04%, 8.37%, and 6.62% returns in the same periods, respectively.
HYG currently sits above its 10-day, 20-day, 50-day, 100-day, and 200-day moving averages (MAs), which from a technical standpoint suggests a very strong possibility that the recent gains can continue. That's because the shares have no short-term overhead resistance to bump up against.
A Look Under The Hood
iShares iBoxx $ High Yield Corporate Bond Fund is a Fixed Income-focused product issued by BlackRock. Its expense ratio of 0.50% makes it the #23 cheapest ETF among 35 total funds in the High Yield Bond ETFs category.
HYG currently boasts $18.89B in assets under management (AUM), placing it #1 of 35 ETFs in its category, and #26 of 1922 total ETFs in the U.S. exchange traded universe.
The investment objective of the iShares iBoxx $ High Yield Corporate Bond ETF is to track the investment results of an index composed of U.S. dollar-denominated, high yield corporate bonds. The value of this junk debt is rising significantly despite higher interest rates.
HYG SMART Grade: More Gains Ahead?
A SMART Grade of A suggests excellent future price growth potential, so it's reasonable to expect even more gains ahead.
For more information about this ETF, including full ratings, news, data, and more, please visit HYG's ticker page .
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.